What is a 1099 form?

  1. I think it something offered in lieu of benefits perhaps?

    Is it a special tax status?

  2. Visit Salus profile page

    About Salus

    Joined: Mar '04; Posts: 112


  3. by   purplemania
    it is the form you get from a bank, or credit union or some such that states your earnings from interest or dividends. The stated amount is "income" and you may have to pay taxes on it. Basically, they are saying "this is what we told the IRS you earned from our institution last year". Hope that helps.
  4. by   Salus
    Thanks for the quick response.

    I just found this link:

  5. by   Businessman
    1099 is an IRS form used by contractors. As a self employed individual, you'll pay SS, Medicare twice (employee and employer), your medical insurance, retirement, etc ...
    As for your question regarding high salaries in TX, any mature individual knows that in this life nothing is for free ...
  6. by   Salus
    Here is a little more info
    1099s and Taxes
    When a person is paid on the form, 1099-misc, all money earned by the individual is paid on an untaxed basis. It is then the responsibility of the individual to file and pay the appropriate taxes. These taxes can be owed to Federal, State and Local governments. Workers compensation and unemployment issues also must be addressed independently.

    W-2s and Taxes
    When a person is paid on the form W-2, the employer automatically withholds and pays all of the necessary employee income taxes as required by the IRS. These taxes include: Federal Income Tax, State Income Tax, and FICA (Social Security and Medicare). In addition, the employer will pay all of the necessary employer taxes. These taxes include: FICA (Social Security and Medicare), FUTA (Federal Unemployment Tax), and SUI (State Unemployment Tax).

  7. by   Salus
    On further review of the site even though Texas still has higher salaries generally, it seems the truly high ones are based on the 1099 status.

Must Read Topics